Cloud Computing: Risks vs Benefits – Part 2

Cloud Computing: Risks vs Benefits – Part 2

In Part 1 of this two-part article, I discussed the context in which, in spite of some drawbacks, cloud computing made sense in the long run (See: Cloud Computing: Risks vs Benefits – Part 1). In the second and concluding part, I carry this argument further and talk about some opposing points of view.

I would like to introduce the concept of BATNA at this point. BATNA, or the best alternative to a negotiated agreement, is a concept in negotiation theory that defines the course of action that will be taken by a party if the current negotiations fail and an agreement cannot be reached. According to this theory, an agreement makes sense as long as it’s better than the next-best alternative. Extending this to the field of computing, going on the cloud makes sense as long as it’s better than the next-best alternative of sticking with traditional IT infrastructure.

Now, in order for a proper assessment, it is necessary to determine what the next-best alternative offers. Other than the obvious advantage of a mature technology that people understand, cloud computing is better on the parameters of costs (See: How Cloud Computing Can Save You Money), scalability (See: Zynga, the Latest Cloud Computing Success) and disaster recovery (See: Earthquakes and Cloud Computing). Even on the issue of security on which cloud computing is pilloried, it can offer distinct advantages that a CD of confidential information that can be misplaced (and has been) cannot (See: Is Cloud Computing Secure? Yes, Another Perspective).

On that note, here’s what MacDonnell Ulsch, CEO and Chief Risk Analyst of the Boston, MA-based ZeroPoint Risk Research, LLC, and keynote speaker the recent Federal Financial Institutions Examination Council (FFIEC) Information Technology Conference held in Washington, DC, had to say about the possible pitfalls of going on to the cloud: “Technology innovation is in part what makes America great, and it is a clear demonstration that the U.S. is a technology leader. But we often fail to reasonably assess the regulatory and other risks associated with new technologies and applications. Failing to meet the mandatory minimum requirements associated with data security and privacy regulations could lay a foundation for other highly impactful risk.”

While some impressive figures of half a billion electronic records in the United States having been compromised over the last six years were mentioned, not all were on the cloud; even if a large part were, it has to be weighed against the billions of dollars businesses are saving and will continue to save due to cloud computing. That is why not only businesses (See: Cars on the Cloud: Microsoft and Toyota Join Hands in Cloud Computing Space ), but traditionally security-paranoid institutions like financial institutions (See: What NYSE’s Adoption of Cloud Computing Means for the Industry ) and the US military have started to embrace the technology (See: US Military Asks for Private Sector’s Help to Understand Cloud Computing).

That is why former federal Chief Information Officer Vivek Kundra, who recently left office, has termed security and privacy concerns as “unfounded and ridiculous” excuses used by federal agencies to avoid adopting cloud computing. In his opinion, the BATNA of “IT cartels” that would “bid for government contracts and their expertise wasn’t superior technology or innovation” but “a PhD in understanding how to navigate the complicated procurement process” was not feasible.

We cannot continue on that path in this tough fiscal environment that we’re in. That is why as part of the administration we instituted a ‘cloud first’ policy, recognizing that some of the most major innovation is not happening within the old model of what I call the ‘IT cartel’ where people continue to win this contract and their objective is essentially to put in as many people as possible and bill at exorbitant rates.” He said.

In conclusion, yes, problems exist, and perhaps, will continue to exist for some more years; but, cloud computing is the future, and the earlier businesses understand that, the more they will benefit.

By Sourya Biswas

sourya

Sourya Biswas is a former risk analyst who has worked with several financial organizations of international repute, besides being a freelance journalist with several articles published online. After 6 years of work, he has decided to pursue further studies at the University of Notre Dame, where he has completed his MBA. He holds a Bachelors in Engineering from the Indian Institute of Information Technology. He is also a member of high-IQ organizations Mensa and Triple Nine Society and has been a prolific writer to CloudTweaks over the years... http://www.cloudtweaks.com/author/sourya/
FacebookTwitterLinkedInGoogle+Share

0 Responses to Cloud Computing: Risks vs Benefits – Part 2

Join Our Newsletter

Receive updates each week on news, tips, events, comics and much more...

Popular

Top Viral Impact

Are Cloud Servers The Right Choice For Your Business?

Are Cloud Servers The Right Choice For Your Business?

Cloud servers offer power, flexibility, reliability, and client friendly hosting for small and medium businesses that have outgrown shared hosting. New business hosting clients are bombarded with an incredible diversity of different choices for their site’s hosting. It can be a challenge to negotiate the range of platforms and the marketing hype that many hosting

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth The Internet of Things is the latest term to describe the interconnectivity of all our devices and home appliances. The goal of the internet of things is to create universal applications that are connected to all of the lights, TVs, door locks, air conditioning, and

Cloud Infographic: Cloud Computing Growth

Cloud Infographic: Cloud Computing Growth

An excellent infographic provided by AwesomeCloud which predicts a continued high level of growth in the cloud computing industry. Potentially staggering numbers for Public Cloud IT Services of $100 Billion by 2016. Infographic Source: AwesomeCloud About Latest Posts souryaSourya Biswas is a former risk analyst who has worked with several financial organizations of international repute, besides being a

Can I Contribute To CloudTweaks?

Yes, much of our focus in 2015 will be on working with other influencers in a collaborative manner. If you're a technology influencer looking to collaborate long term with CloudTweaks – a globally recognized leader in cloud computing information – drop us an email with “tech influencer” in the subject line.

Please review the guidelines before applying.

Whitepapers

Top Research Assets

HP OpenStack® Technology Breaking the Enterprise Barrier

HP OpenStack® Technology Breaking the Enterprise Barrier

Explore how cloud computing is a solution to the problems facing data centers today and highlights the cutting-edge technology (including OpenStack cloud computing) that HP is bringing to the current stage. If you are a CTO, data center administrator, systems architect, or an IT professional looking for an enterprise-grade, hybrid delivery cloud computing solution that’s open,

Public Cloud Flexibility, Private Cloud Security

Public Cloud Flexibility, Private Cloud Security

Public Cloud Flexibility, Private Cloud Security Cloud applications are a priority for every business – the technology is flexible, easy-to-use, and offers compelling economic benefits to the enterprise. The challenge is that cloud applications increase the potential for corporate data to leak, raising compliance and security concerns for IT. A primary security concern facing organizations moving

Hewlett-Packard Company On-Demand Webinar

Hewlett-Packard Company On-Demand Webinar

Shifting Workloads and the Server Evolution Learn more about the latest industry trends and the challenges customers are talking about. Every ten to fifteen years, the types of workloads servers host swiftly shift. This happened with the first single-mission mainframes and today, as disruptive technologies appear in the form of big data, cloud, mobility and